Mobily enters US$325 million vendor financing arrangement with NSN

Mobily is set to further modernise and expand its 2G, 3G and 4G networks between 2013 and 2015 having signed a Memorandum of Understanding (MoU) with Nokia Siemens Networks (NSN). As per the MoU, NSN will facilitate a long term export credit of US$325 million with Finnvera, Finnish Export Credit (FEC); and lenders Credit Agricole and Deutsche Bank. Mobily will use this credit to purchase advanced solutions and services from NSN.

The Finnish export credit agency Finnvera and its subsidiary FEC have issued their guarantee and financing offers. Mobily has mandated Credit Agricole and Deutsche Bank to structure and arrange for Shariah compliant financing, for which the services of Latham & Watkins as legal counsel to Mobily, and Allen & Overy as legal counsel to lenders have been sought.

Khalid AI Kaf, CEO, Mobily, said: We will be investing US$325 million over the next 18 months to upgrade and expand our mobile broadband infrastructure. This infrastructure upgrade using NSN’s advanced solutions and services will set a new benchmark in providing unmatched data service experience in Saudi Arabia.”

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